2026 Regular Session
SB 427
Relating to loan form
Law
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Sign in to take action- Introduced
- Passed Senate
- Passed House of Delegates
- To Governor
- Became Law
Bill overview
This bill modifies the regulations for residential mortgage lenders, brokers, and servicers in West Virginia. It limits the maximum interest rate on subordinate mortgages to 18% per year and establishes rules regarding loan fees, points, and documentation requirements. The bill also addresses issues such as prepayment rebates, appraisal fees, and prohibits certain practices like coercing appraisers or charging excessive fees.
Key provisions
- Limits the maximum interest rate on subordinate mortgages to 18% per year.
- Establishes rules for prepayment rebates and loan fee documentation.
- Prohibits excessive fees and points on refinancing loans.
- Regulates appraisal fees and requires documentation of loan benefits.
- Addresses application fees, ensuring they are not charged unless a loan is consummated.
- Outlines prohibited terms in mortgage loans, such as requiring arbitration or securing loans with personal property.
- Restricts the use of yield spread premiums above certain limits.
- Prohibits advising consumers not to make timely payments on existing loans.
Who is affected
- Licensed residential mortgage lenders
- Mortgage brokers
- Mortgage servicers
- Borrowers of residential mortgages
- Appraisers
Notable changes
- Increases the limit on interest rates for subordinate mortgages.
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